✨ Financial Statement Accounting Policies
NEW ZEALAND GAZETTE
12 NOVEMBER
4331
WEL ENERGY GROUP LIMITED
Statement of Accounting Policies
For the Year Ended 31 March 1996
These financial statements are prepared and presented in accordance with the Electricity (Information Disclosure) Regulations 1994.
A. General Accounting Policies
The general accounting policies recognised as appropriate for the measurement and reporting of results and the financial position have been followed in the preparation of these financial statements.
The historical cost method, as modified by the revaluation of certain assets, has been followed.
The Electricity Disclosure Guidelines have been followed in the preparation of these financial statements.
B. Particular Accounting Policies
The particular accounting policies which have a significant effect on the financial performance and financial position are as follows:
(a) Income Tax
The income tax expense charged to the Statement of Financial Performance includes both current and deferred tax. Deferred tax is calculated using the liability method, and is accounted for using the comprehensive basis, except that deferred tax is not provided on asset revaluations of the distribution system.
(b) Trade Debtors
Trade debtors are stated at their estimated realizable value after adequate provision for doubtful debts. Bad debts are written off in the period they are identified.
(c) Revenue Recognition
Line and energy revenues include an accrual for charges incurred by customers but not billed at balance date.
(d) Inventories
Inventories are valued at the lower of weighted average cost and net realizable value. Work in Progress is valued at cost comprising direct labour, materials, freight and a proportion of production overheads based on a normal level of activity.
(e) Fixed Assets
The distribution system is revalued by independent valuers every three years based on an optimised deprival value basis. Additions to the distribution system are stated at cost. Land and buildings are revalued by independent valuers every three years on the basis of open market value for existing use.
Costs for internally constructed assets comprise direct labour, materials, freight, and a proportion of production overheads based on a normal level of activity. All other fixed assets are recorded at cost less accumulated depreciation.
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VUW Te Waharoa —
NZ Gazette 1996, No 165
NZLII —
NZ Gazette 1996, No 165
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Statement of Accounting Policies for WEL Energy Group Limited
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🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Income Tax, Trade Debtors, Revenue Recognition, Inventories, Fixed Assets, WEL Energy Group